Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.
In this market, a number of people find themselves "under water". That is, the value of their home is less than the amount they owe on it. This only becomes a problem if the owner has to sell or needs to refinance because of an upcoming adjustment in their interest rate. In this situation, the homeowner is not going to be able to refinance because of the decreased value. It is possible that the lender could re-write the deal.
If you are in this situation and the lender will not rewrite the deal, there are a number of options that you have in order to maintain your credit as much as possible. Below I list a number of different options. While I have listed them from worst to best, everyones situation is different and whether or not something is good for you or not will depend on your circumstances.
The first is to wlak away and let the home go into foreclosure. This is the least preferable option and will do the most damage to you credit. You stop making payments, the lender forcloses and takes possession of the property. You would still have potential liabilty for the difference between the amount you ... more
Are you on The Rain? Grow Your Network!